Taxes of a Turkish Ltd. Şti. in plain words: corporate tax, KDV, provisional tax and withholding

A Turkish limited company pays several taxes on different calendars, and a foreign owner often sees only the bank statement. This guide explains the main ones in plain words, with the rates we confirmed from sources on 6 November 2026. It is information only, not tax advice: confirm every figure and date with your SMMM.

Corporate tax: kurumlar vergisi

A Ltd. Şti. is a resident taxpayer whoever owns it, and pays corporate tax on its annual profit. The general rate under Article 32 of Law No. 5520 is 25%. A 30% rate applies, from 2025 earnings, to banks, payment and e-money institutions, insurers and companies in certain build-operate-transfer or public-private partnership projects. We found no 2026 change to the general rate.

A calendar-year company files and pays by 30 April of the following year: the 2025 return was open from 1 to 30 April 2026. Taxable profit is the accounting result adjusted by tax rules, so it can differ from the ledger figure.

• General rate: 25%
• Banks and similar institutions: 30%
• Return and payment: 1–30 April of the next year

Provisional tax: geçici vergi

Provisional tax is an advance on the year’s corporate tax. A calendar-year company reports three periods, and each return and payment is due by the evening of the 17th day of the second month after the period. The next deadline, for July–September 2026, is 17 November.

The rate equals the year’s corporate rate, so 25% for most companies. Profit is counted cumulatively, tax paid earlier is deducted, and the total is credited against the annual tax in April. Per EY’s summary of 2026 changes, inflation adjustment is not applied for 2025–2027; confirm the effect on your figures with your SMMM.

Because each payment depends on the quarter’s books being closed, it helps to send invoices and bank statements to your accountant a week before the 17th. If the date falls on a weekend, ask your SMMM whether it moves to the next working day.

KDV: value added tax

KDV is charged on sales and offset by the KDV paid on purchases; the company pays the difference, or carries a credit forward. The rates are 1%, 10% and 20%. The general rate is 20%, in force since 10 July 2023. The 1% and 10% rates apply only to goods and services listed in Presidential decisions, so the rate for your item must be checked in the list. We found no change to these rates in 2026.

The monthly KDV return is due by the 28th of the following month, with payment on the same date. Invoices are issued mainly through the e-invoice system, which has its own guide.

• 20%: general rate
• 10%: listed items, for example restaurant services and some medicines
• 1%: items in the first list of the decision

Withholding: stopaj and the muhtasar return

Stopaj is tax that the payer deducts when paying certain amounts and passes to the state for the recipient. A Ltd. may withhold on professional fees (20%), rent for premises (20%) and dividends (15% since 22 December 2024). Wages are taxed on a progressive scale by the employer. The President can change these rates, so check the decision in force on the payment date.

Withheld tax is reported on the monthly muhtasar return, due by the 26th of the following month, with payment on the same date. Payments to non-resident companies and individuals follow Articles 15 and 30 of Law No. 5520, and a double tax treaty may reduce the rate.

• Professional fees and rent: 20%
• Dividends: 15%
• Muhtasar: by the 26th

What a foreign shareholder should know

Foreign ownership does not change how the Ltd. is taxed: same rates, returns and deadlines. The difference is on the owner’s side. Profit stays in the company until a distribution is decided, and paying it abroad triggers dividend withholding and possible treaty relief, described in our dividends guide. Taxes in the owner’s home country are outside this guide.

Most returns are filed electronically on short deadlines, so a Turkish SMMM normally handles them, sometimes under a power of attorney from the owner. Rates and thresholds can change by decision, which is why every date here should be re-checked before you act.

• Appoint an SMMM and agree who files
• Keep a calendar of the 17th, 26th and 28th deadlines
• Check rates on the payment date

Sources

• mevzuat.gov.tr — Corporate Tax Law No. 5520 (Art. 32), VAT Law No. 3065 (Arts. 28, 41), Income Tax Law No. 193 (Art. 94); legal basis only, the site blocks automated access, so figures were read in secondary copies
• gib.gov.tr — Revenue Administration communiqué on Art. 32 of Law No. 5520: 25% general rate, 30% for banks and similar institutions, provisional tax at the year’s rate
• pwc.com.tr — corporate tax rate history 2017–2025 onward (secondary copy)
• turmob.org.tr — TÜRMOB bulletin: VAT rates 1%, 10%, 20%, general rate 20% since 10 July 2023
• alomaliye.com — corporate tax return window 1–30 April 2026 and Revenue Administration guides (secondary copy)
• ey.com/tr — summary of 2026 tax changes: revaluation rate 25.49%, inflation adjustment not applied for 2025–2027
• multinet.com.tr — 2026 tax calendar used to cross-check the 17th, 26th and 28th deadlines (secondary copy; confirm on gib.gov.tr)

Questions